Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,510 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,880 |
| 4 Bedrooms | $3,260 |
| 5 Bedrooms | $3,782 |
| 6 Bedrooms | $4,236 |
| 7 Bedrooms | $4,575 |
| 8 Bedrooms | $4,804 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,090 | $478,249 | 0.44% | F |
| 3BR | $2,880 | $625,375 | 0.46% | F |
| 4BR | $3,260 | $733,113 | 0.44% | F |
| 5BR | $3,782 | $877,611 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 98321, located in Buckley, WA, presents a unique balance between yield and stability for real estate investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area is $2020, significantly lower than the market rent of $1760. This discrepancy suggests that the FMR is set below what the market can bear, potentially offering an opportunity for higher yields when properties are rented at market rates.
However, the median home value of $664,373 indicates that this is not a low-cost area, and the initial investment required for property acquisition is substantial. The rental income, therefore, must be carefully considered against the cost of entry. With only 9.3% of residents identified as renters, the market is relatively small, which could impact the overall demand for rental units. Additionally, a 26-day Days on Market (DOM) average suggests that properties may take longer to rent out compared to areas with higher rental demand.
The median household income of $127,411 provides insight into the financial stability of the area. Given the high income levels, tenants are likely to have better financial standing, reducing the risk of default on rent payments. However, the low percentage of renters also means that the potential tenant pool is limited, which could affect the long-term cash flow stability of rental investments.
In conclusion, ZIP 98321 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The key figures driving this assessment are the median household income, which supports financial stability, and the low percentage of renters, which limits the size of the potential tenant market. While the FMR is lower than the market rent, indicating a possible yield advantage, the high median home value and limited rental demand suggest that the primary focus should be on maintaining a consistent cash flow rather than pursuing high-risk, high-reward strategies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.